New Jersey extends reinsurance program for individual health insurance through 2028

New Jersey's health insurance landscape is set for a significant boost, thanks to the extension of a crucial reinsurance program. During the recent Assembly Budget Committee meeting, officials announced that the program will continue for an additional five years, from 2024 through 2028, following federal approval. This initiative aims to enhance certainty and stability in the state's individual health insurance market.

The Department of Health has received promising news from the federal government, with an estimated $555 million in pass-through funding to support the waiver this year. This funding is vital for maintaining affordable health care options for residents.

In a related effort to improve affordability, New Jersey has enacted new legislation focused on prescription costs. Key measures include licensing pharmacy benefit managers (PBMs) and extending a $35 monthly cap on insulin costs to all state-regulated markets. This law aims to increase oversight of PBMs, curbing practices that inflate prescription drug prices.

As part of the 2025 plan year, all health plans regulated by the department will implement caps on insulin, asthma medications, and EpiPens, ensuring that residents can access essential medications without financial strain. Officials emphasized the critical nature of affordable prescriptions, stating that high medication costs can threaten lives.

The Department of Health expressed gratitude to Governor Murphy and the legislature for their commitment to making health care more affordable and accessible. They look forward to continuing collaboration to protect the health care needs of all New Jerseyans, ensuring that recent gains in health care affordability are not lost.